The government has revealed plans to undertake nine tax reforms which will include the integration of Kenya Revenue Authority (KRA) systems with those of telecommunication companies.
As outlined in the Fourth Medium Term Plan (MTP IV) 2023-2027, which was launched by President William Ruto on March 21, it was explained that the integration with external systems would ensure a boost in revenue collection for the government.
This will be similar to strategies that were implemented in the betting industry which has seen KRA collect billions more in taxes in that sector.
Further, the government is seeking to improve the collection of taxes in the rental sector through the use of technology and mapping out properties across the country.
"The tax reforms also include rolling out measures leveraging on technology and enhanced data analytics at the Customs and Border Control to reduce revenue risk on imported goods," read the Medium Term plan in part.
"Strengthening big data analytics and adoption of modern technologies such as Artificial Intelligence (AI), blockchain and machine learning to support revenue mobilization."
In addition, the government will enhance tax compliance among kenyans through the simplification of various tax processes and expanding taxpayer self-service options.
Notably, the Treasury had earlier revealed plans to have KRA launch a USSD code through which Kenyans can pay taxes. This was detailed in the Medium Term Revenue Strategy document.
Further, Ruto's administration is seeking to have more Kenyans pay taxes with the government noting that it would develop a strategy to have Kenyans in the informal sector also take part in nation-building.
"The reforms include the implementation of an electronic tax invoice management system for efficient and effective VAT collection and the automation of manual tax processes including exemptions and revenue reconciliation," read the document in part.
Notably, the reforms will be implemented from the upcoming financial year 2024/25 to the 2027/2028 financial year.
The Medium Term also spells out budgetary reforms which the government notes will help Ruto achieve his Bottom Up Economic Transformation Agenda (BETA).
Some of the budgetary reforms include the implementation of a common payroll system, efficient implementation of government projects and rolling out an end-to-end e-Government procurement system.
